Offering Memorandum THE RAIL BURGER Freddy’s Frozen Custard · 2019-04-08 · Lakewood, CO...

Freddy’s Frozen CustardLakewood, CO

REPRESENTATICE

THE RAIL BURGER5839 FRANTZ ROADDUBLIN (COLUMBUS), OH 43016

Offering Memorandum

AERIAL PHOTO THE RAIL BURGER

This information has been secured from sources we believe to be reliable, but we make no representations or warranties, expressed or implied, as to the accuracy of the information. References to square footage or age are approximate. Buyer must verify the information and bears all risk for any inaccuracies. Any projections, opinions, assumptions or estimates used herein are for example purposes only and do not represent the current or future performance of the property. Marcus & Millichap Real Estate Investment Services is a service mark of Marcus & Millichap Real Estate Investment Services, Inc. © 2013 Marcus & Millichap ACT ID ZAA0070014


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THE OHIO STATEUNIVERSITY

AIRPORT

THE MALL AT TUTTLE CROSSINGMCDONALD’S

BURGERKING

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THE RAIL BURGER



Starbucks

KARRIC PLACE OF DUBLIN540+ UNITS

THE MALL AT TUTTLE CROSSING

MCDONALD’S

FRANTZ ROAD19,000 CPD




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FRANTZ ROAD19,000 CPD

DOWNTOWNCOLUMBUS


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FINANCIAL OVERVIEW THE RAIL BURGER

STARBUCKS - RELOCATION

THE RAIL BURGER5839 Frantz RoadDublin (Columbus), OH 43016

FINANCIAL SUMMARY

Price $2,485,000

Down Payment 100% $2,485,000

Cap Rate 6.50%

Building SF 4,580 SF

Net Cash Flow 6.50% $161,500

Year Built 2018

Lot Size .92 Acres

LEASE SUMMARY

Lease Type Double-Net (NN) Lease

Tenant Mariola Burgers Dublin, LLC

Guarantor TRB Hospitality, LLC

Roof & Structure Landlord Responsible

Lease Commencement Date March 1, 2018

Lease Expiration Date February 28, 2028

Lease Term Remaining 10 Years

Rental Increases 10% Every 5 Years

Renewal Options 2, 5 Year Options

BASE RENT $161,500

Net Operating Income $161,500

Total Return 6.50% $161,500

ANNUALIZED OPERATING DATA

LEASE YEARS ANNUAL RENT CAP RATE

Current - 8/31/2023 $161,500.00 6.50%

9/1/2023 - 8/31/2028 $177,651.96 7.15%

OPTIONS ANNUAL RENT CAP RATE

Option 1 $195,408.00 7.86%

Option 2 $214,958.04 8.65%




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TENANT OVERVIEW

Award-winning chef Mike Mariola and wife, Emily, opened The City Square Steakhouse in Wooster, Ohio in 2008. It has since been recognized as one of the Top 100 Steakhouses in America. Known for serving juicy Certified Angus Beef steaks, The City Square Steakhouse also quickly developed a following for the local, fresh beef burgers served on the bar menu. Unique burger creations and All-Ohio beer, lent themselves to develop a concept of their own.

Drawing inspiration from the success of the steakhouse’s bar menu, Mariola founded The Rail in 2011, opening the first location in Akron. A gourmet burger bar known for championing creative American fare and Ohio craft brews, the concept now has five locations in Akron, North Olmsted, Canton, Strongsville and Dublin. The North Olmsted location is also positioned next to another Mike Mariola Restaurants concept, the Ohio Beer Garden, featuring local brews and a relaxed atmosphere.

The Rail has received several awards over the years including:

• Best Burger in Stark County (2017)

• People’s Choice Award - Taste of the Pro Football Hall of Fame (2017)

• Best in Show - Burger Wars (2017)

www.therailburger.com

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THE RAIL BURGER



Starbucks

LOCATION OVERVIEWINVESTMENT HIGHLIGHTSLocated just north of Columbus, Dublin is an Ohio city of more than 47,000 residents. Dublin is consistently ranked one of the safest cities in the nation and in 2015 was named one of America’s Top 20 Creative Class Cities. It is home to more than 20 corporate headquarters, an entrepreneurial center, 4,300+ businesses and world-class events. The city offers residents and corporate citizens responsive services, attractive housing, superior public education, direct regional highway access, abundant park space, thoughtful and strategic planning, innovative ideas and technology and a dynamic community life.

Columbus is the fastest growing city in the Midwest, with a vibrant blend of arts and culture; inspired culinary, fashion, music and entertainment scenes; exciting collegiate and professional sports; and an open, entrepreneurial spirit. Thanks to the sprawling Ohio State University and a wide array of businesses, it’s also home to a bustling and energetic workforce. A prosperous economy draws millennials, creating a young and energetic atmosphere throughout the city.

The main campus of Ohio State University, which has one of the largest enrollments of any American university, occupies a large site north of downtown. As Ohio’s best and one of the nation’s top 20 public universities, Ohio State is further recognized by a top-rated academic medical center and a premier cancer hospital and research center. As a land-grant university, Ohio State has a physical presence throughout the state, with campuses and research centers located around Ohio.

The city is comprised of distinct neighborhoods, including: Downtown/ Franklinton, Short North, German Village/Brewery District, Arena District, Campus/Clintonville, Easton, and Near East Side. Few cities have such a mix of diverse neighborhoods, all within a short walk of downtown.

Columbus’ economy is balanced with a combination of education, technology, government, research, insurance and health care entities as major employers within the city. The local economy is not dominated by any single industry; and as a result is more stable than other locations. As the Columbus region’s biggest job center, downtown’s resurgence over the last decade means that for many businesses, it is the best and only location to be.

• Rare Availability for Similar Assets in Marketplace – High Barriers to Entry

• Strong Sales – Low Rent to Sales Ratio

• 20 Year Roof Warranty

• 212,068 Residents in Growing Dublin Trade Area – Columbus MSA

• Brand New 2018 Construction

• Adjacent to The Mall at Tuttle Crossing (120+ Stores)

• Average Household Income Exceeds $112K in 5-Mile Radius

• Ten Percent Rental Increases Every Five Years

• Easy Access to the I-270 Freeway – 20 Minutes to Downtown Columbus

• Minutes from The Ohio State University (66,000+ Students)

• Situated Near Major Retailers – Walmart Supercenter, Best Buy, Target, Sam’s Club, The Home Depot, and More

• Strong Daytime Population - 216,300+ Employees in Surrounding Area

PROPERTY DESCRIPTION

Income 1-Mile 3-Miles 5-Miles

2017 Est. Average Household Income $103,470 $106,156 $112,031

2017 Est. Median Household Income $81,672 $78,194 $81,356

2017 Est. Per Capita Income $49,877 $46,909 $46,571

Population 1-Mile 3-Miles 5-Miles

2022 Projection 10,935 83,112 222,537

2017 Estimate 10,176 78,354 212,068

Growth 2017 - 2022 7.46% 6.07% 4.94%

Households 1-Mile 3-Miles 5-Miles

2022 Projections 5,443 37,109 93,033

2017 Estimate 4,898 34,592 88,055

Growth 2017 - 2022 11.11% 7.28% 5.65%

DEMOGRAPHICS




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PROPERTY PHOTOS

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THE RAIL BURGER



Starbucks

Williams-Sonoma

MAP

1 MILEThe Mall at

Tuttle Crossing

7 MILESThe Ohio State

University

19 MILESJohn Glenn ColumbusInternational Airport

15 MILESDowntownColumbus

Marcus & Millichap hereby advises all prospective purchasers of Net Leased property as follows:

By accepting this Marketing Brochure, you agree to treat the information contained herein regarding the lease terms as confidential and proprietary and to only use such information to evaluate a potential purchase of this net leased property.

The information contained in this Marketing Brochure has been obtained from sources we believe to be reliable. However, Marcus & Millichap has not and will not verify any of this information, nor has Marcus & Millichap conducted any investigation regarding these matters. Marcus & Millichap makes no guarantee, warranty or representation whatsoever about the accuracy or completeness of any information provided.

As the Buyer of a net leased property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase. This Marketing Brochure is not a substitute for your thorough due diligence investigation of this investment opportunity. Marcus & Millichap expressly denies any obligation to conduct a due diligence examination of this Property for Buyer.

Any projections, opinions, assumptions or estimates used in this Marketing Brochure are for example only and do not represent the current or future performance of this property. The value of a net leased property to you depends on factors that should be evaluated by you and your tax, financial and legal advisors.

Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a care-ful, independent investigation of any net leased property to determine to your satisfaction with the suitability of the property for your needs.

Like all real estate investments, this investment carries significant risks. Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and finan-cial documents related to the property and tenant. While the tenant’s past performance at this or other locations is an important consideration, it is not a guarantee of future success. Similarly, the lease rate for some properties, including newly-constructed fa-cilities or newly-acquired locations, may be set based on a tenant’s projected sales with little or no record of actual performance, or comparable rents for the area. Returns are not guaranteed; the tenant and any guarantors may fail to pay the lease rent or property taxes, or may fail to comply with other material terms of the lease; cash flow may be inter-rupted in part or in whole due to market, economic, environmental or other conditions. Regardless of tenant history and lease guarantees, Buyer is responsible for conducting his her own investigation of all matters affecting the intrinsic value of the property and the value of any long-term lease, including the likelihood of locating a replacement tenant if the current tenant should default or abandon the property, and the lease terms that Buyer may be able to negotiate with a potential replacement tenant considering the location of the property, and Buyer’s legal ability to make alternate use of the property.

Net Leased Disclaimer

The information contained in the following offering memorandum is proprietary and strictly confidential. It is intended to be reviewed only by the party receiving it from Marcus & Millichap and it should not be made available to any other person or entity without the written consent of Marcus & Millichap. By taking possession of and reviewing the information contained herein the recipient agrees to hold and treat all such information in the strictest confidence. The recipient further agrees that recipient will not photocopy or duplicate any part of the offering memorandum. If you have no interest in the subject property at this time, please return this offering memorandum to Marcus & Millichap.

This offering memorandum has been prepared to provide summary, unverified financial and physical information to prospective purchasers, and to establish only a preliminary level of interest in the subject property. The information contained herein is not a substitute for a thorough due diligence investigation. Marcus & Millichap has not made any investigation, and makes no warranty or representation with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCBs or asbestos, the compliance with local, state and federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any tenant, or any tenant’s plans or intentions to continue its occupancy of the subject property. The information contained in this offering memorandum has been obtained from sources we believe to be reliable; however, Marcus & Millichap has not verified, and will not verify, any of the information contained herein, nor has Marcus & Millichap conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided. All potential buyers must take appropriate measures to verify all of the information set forth herein. Prospective buyers shall be responsible for their costs and expenses of investigating the subject property.

ALL PROPERTY SHOWINGS ARE BY APPOINTMENT ONLY. PLEASE CONTACT THE MARCUS & MILLICHAP AGENT FOR MORE DETAILS.

Confidentiality Agreement

exclusively listedExclusively listed by:

OFFICES NATIONWIDEwww.marcusmillichap.com

JAMIE MEDRESSExecutive Managing DirectorPHOENIX OFFICETel: (602) 687-6778Fax: (602) [email protected]

CHRIS LINDFirst Vice PresidentPHOENIX OFFICETel: (602) 687-6780Fax: (602) [email protected]

MARK RUBLESenior Managing DirectorPHOENIX OFFICETel: (602) 687-6766Fax: (602) [email protected]

MICHAEL GLASSBroker of RecordINDEPENDENCE OFFICETel: (216) 264-2000License: BRK.2007005898

Offering Memorandum THE RAIL BURGER Freddy’s Frozen Custard · 2019-04-08 · Lakewood, CO...

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Transcript of Offering Memorandum THE RAIL BURGER Freddy’s Frozen Custard · 2019-04-08 · Lakewood, CO...